Philanthropy is not a niche interest. The vast majority (86%) of high-net-worth (HNW) individuals already give to charity, amounting to approximately £8bn in charitable donations in the United Kingdom each year, so it is a highly relevant consideration in wealth planning. Many wealthy clients see charitable giving as an important part of their lives, values and legacy. Yet advisers often overlook it in financial planning conversations, viewing it as a private matter. This is missed opportunity. In an increasingly fragmented advice market, wealth planning needs to reflect the client's objectives in the round, not just those that are financial. Philanthropy offers a route into discussions about purpose, family, legacy and impact that has the potential to have benefits for the adviser, client and society.
Recent research by Capgemini found that only 19% of HNW individuals use a single wealth management firm, with an increasing number working with multiple advisers, highlighting the growing complexity of clients' advisory networks. As adviser relationships become more fragmented, firms need ways to demonstrate relevance beyond technical expertise.
Philanthropy creates a natural opportunity for advisers to co-ordinate conversations across tax, legal, investment, succession and family governance issues, helping advisers remain central to a client's decision-making ecosystem. Rather than competing with other advisers, philanthropy not only encourages but requires collaboration and showcases the value of bringing together specialist expertise.
Yet research shows there is a disconnect between what advisers think is important and what clients want. While only 36% of advisers believe philanthropy is important to discuss, 60% of HNW individuals want these conversations. When philanthropy is discussed, clients overwhelmingly see value in the conversation; 93% of donors who spoke with an adviser about philanthropy found it beneficial.
"If you want to get to know someone, ask them if they give to charity. It is incredible how animated and open people are when they talk about the charities they care about, even people who are otherwise quite private."
Talking about charitable ambitions often reveals far more about a client than discussions about investment performance or tax efficiency alone. If you want to get to know someone, ask them if they give to charity. It is incredible how animated and open people are when they talk about the charities they care about, even people who are otherwise quite private. It offers advisers an opportunity to get to know clients better and deepen relationships.
However, there remains a perception among some that discussing giving could mean a client moves assets away from their firm. New evidence suggests the opposite. Public First modelling found that firms offering philanthropy advice could actually increase client lifetime value by nearly 25% over a decade. The same modelling suggests firms with a philanthropy offering could achieve assets under management that are around 15% higher than firms that do not provide such support. Giving is a topic that creates opportunities for more meaningful engagement, helping firms deepen trust and reduce the risk of client attrition.
With the greatest transfer of wealth in history underway, conversations about values, purpose and legacy are increasingly important. For families, this raises important questions. How will wealth be stewarded? What role should giving play? And how can charitable ambitions be passed on with the same care as financial assets? For advisers worried about retaining relationships as wealth passes between generations, philanthropy provides a mechanism for bringing spouses, children and grandchildren into the advisory process early. By engaging the next generation, you can create a shared family purpose and encouraging constructive conversations about wealth and responsibility. But these are not questions to leave until later. They are conversations best had early — and with the right expertise around the table.
Philanthropy is not a topic that can only be discussed once and never revisited. Clients change, as do their passions and the key life moments that are addressed in every client-adviser relationship, be it selling a business, receiving an inheritance, retirement or losing a loved one, can also shape and be shaped by philanthropic conversations.
Clients are not necessarily looking for advisers to become charity experts. What they want is for advisers to understand where philanthropy fits into the broader wealth picture and know when to involve specialist support. The role of the professional adviser is often to start the conversation, understand client goals and connect them to appropriate philanthropic expertise when needed. That could be in the form of a trusted intermediary, such as a donor advised fund (DAF) to hold and distribute the funds, or a dedicated philanthropy adviser to advise on the strategy needed to achieve their giving ambitions.
Clients routinely receive advice on business succession, retirement, inheritance and tax planning. Integrating philanthropy into wealth planning ensures it receives the same attention as other investments. While generosity is often emotional, strategic planning is essential for meaningful charitable impact, especially in high-value philanthropy.
In a world where wealthy clients increasingly work with multiple advisers and expect more personalised support, philanthropy can no longer sit on the margins of wealth planning. It is a powerful way to understand clients more deeply, strengthen adviser-client relationships, support succession conversations and unlock greater impact for both clients and society. As wealth planning becomes more collaborative, advisers would be wise to ensure that philanthropy has a permanent seat at the table.
Image Credit: Charities Aid Foundation (CAF)